ROME—Ahlstrom's LabelPack division, "one of Europe's main producers of specialty papers for flexible packaging and labeling," announces a price increase of €100/tonne for all paper grades.

States a company press release: "The manufacturing costs of specialty papers for flexible packaging, labeling, and self-adhesive laminates have increased dramatically over recent months, and the signs are there are more to come. The cost increase is a combination of rapidly rising prices for energy, chemicals, and pulp. Increases in transport costs are also to be expected. The industry faces a total increase of excess of €100 per tonne."

Adds Diego Borello, president of Ahlstrom's LabelPack division: "For all these reasons, we are forced to increase the prices of all our paper grades by the same amount. But, in order to make it easier for our customers to absorb and pass on the increase, it will be made in two steps. The prices for shipments from May 1, 2003, onward will go up €50, followed by a similar increase on June 1, 2003."

Ahlstrom says, across the industry, energy prices have risen considerably—in some countries by up to 35 percent. "The costs of chemicals have risen by close to 20 percent, and the price increase for cellulose pulp is even more dramatic. Pulp manufacturers worldwide recently announced the third price increase in 2003 and the near certainty of more to come," adds the packaging industry supplier.